Notices to Centre, Ogra on plea against oil price hike

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Picture shows exterior of Lahore High Court building. — AFP/File
Picture shows exterior of Lahore High Court building. — AFP/File

LAHORE: The Lahore High Court on Monday issued notices to the federal government, the Oil and Gas Regulatory Authority (Ogra) and other authorities on a petition challenging the recent increase in petroleum prices.

Justice Khalid Ishaq heard the petition filed by the Judicial Activism Panel, challenging the hike in the prices of petroleum products in wake of US-Israel war on Iran.

The judge also sought details of the mechanism used to determine petroleum prices.

During the hearing, the petitioner’s counsel, Azhar Siddique, pointed out that petroleum prices were increased despite the country having reserves sufficient for 28 days.

He said the federal government increased the prices of petrol and diesel by approximately Rs55 per litre, fixing petrol price at Rs321.17 and diesel’s at Rs335.86 per litre.

He wondered that while the prices in the international market increased by only four percent, the hike in Pakistan was about 20pc.

The counsel stated that under the existing regulatory framework, the Oil Marketing Companies (OMCs) are legally required to maintain strategic petroleum reserves equal to at least 15 days of national consumption.

Therefore, he said, the petroleum products currently being sold in the market were purchased earlier at international prices and were already part of the existing stock.

He argued that enforcing the increased prices on the previously procured stock amounted to unjust enrichment of oil companies and exploitation of consumers.

Advocate Siddique said the action reflected regulatory failure on the part of Ogra and the energy ministry.

He pointed out that there was no clear mechanism for determining petroleum prices.

He said the court had earlier directed the authorities to present the pricing mechanism, but it had not been submitted yet.

The judge adjourned the hearing till March 25 and directed the respondents to submit written replies on the matter.

Published in Dawn, March 10th, 2026

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